Insights on Silver’s Surge

Veteran metals trader Robert Gottlieb discusses the recent surge in silver prices and what it means for investors.

Silver has really outperformed other precious metals lately. The prices have hit record highs, which is great news for silver holders. However, it also means that things like silver jewelry and solar panels are becoming pricier. To help us grasp the global dynamics of this silver surge, we have Bob Gottlieb with us. Bob, welcome to the show.

Gottlieb: Thanks for having me. It’s great to be here.

Host: You’ve spent a long career assisting major banks with their reserve management and have recently retired from that role. Can you shed some light on what’s going on with silver?

Gottlieb: Sure, it essentially kicked off with a rise in gold prices. Over the last couple of years, gold has seen a significant rally, and silver has naturally followed. My perspective is that gold has been perceived as the ultimate safe haven, with silver as a close second. Silver’s been in a slump for about five years, but its unique properties might facilitate a comeback. Demand has outpaced supply for those years, and like gold, it’s also regarded as a safe asset. Historically, silver has been tied to currency.

Host: Right.

Gottlieb: Domestic production of silver is at a record high. There were expectations of tariffs, which were indeed imposed earlier this year on Mexico and Canada. Since Mexico is the top global silver producer, these tariffs could restrict silver imports.

Before the tariff concerns arose, the CME had around 250 million ounces of physical silver stored in the U.S. Due to the tariffs, silver prices have risen more in the U.S. than abroad. If a 10% tariff is applied, and silver is priced at $50, you’d essentially be paying $5 extra to import it, making it $55 in the U.S. compared to $50 internationally.

Host: Would anyone listening think it’s a good idea to drain their savings or retirement to invest heavily in silver? What would your advice be?

Gottlieb: I can’t specifically advise on how much to invest in silver as part of a diversified portfolio. Generally, during stock market downturns or times of economic or geopolitical uncertainty, safe-haven assets like gold and silver tend to perform better.

Host: You’ve mentioned multiple times that gold and silver are considered safe assets, and there’s a rush for these across the globe. What drives such a demand for these safe options?

Gottlieb: There’s a significant amount of economic and political instability. Looking at the U.S. government policies—questions about tariffs and international actions create a lot of uncertainty. Consequently, countries are moving away from reliance on the dollar. This growing uncertainty is why we’ve seen increased interest in safe assets. Interestingly, while gold has attracted much of the focus, silver is now starting to catch up.

Host: Looking ahead, what’s in store for silver? Is there a chance it could run out?

Gottlieb: The rising prices in the U.S. have led to some selling, including those who may have inherited silverware from family. With the price around $50, I personally wouldn’t use silverware anymore. The state’s refineries are overwhelmed, and I believe people will continue to see silver as a solid safe haven asset.

Host: Bob Gottlieb, a former precious metals trader and author of an upcoming book on gold and silver markets, thank you for your insights.

Gottlieb: Thank you for having me.